GERMANY AND FRANCE: AGREEMENT ON MEDITERRANEAN UNION

Hannover, 3rd March 2008 - President Nicolas Sarkozy of France and Chancellor Angela Merkel of Germany ended months of wrangling by presenting a joint plan to strengthen Europe's ties with countries on its southern borders.

French President Nicolas Sarkozy will probably see the birth of the Mediterranean Union, his pre-election brainchild.

In fact at a meeting with Sarkozy in Hannover on 3rd March, Angela Merkel has finally agreed to the union’s formation granting support to the creation of the Mediterranean Union, receiving in exchange assurance thatit would bea projectfor all 27 member states.

Speaking after the official opening of the IT fair 'Cebit' in Hanover, Sarkozy and Merkel agreed that the Union's dealings with non-EU countries along the Mediterranean coastneed a new basis, with Merkel describingthe EU's activities in the region asa "central element" of the EU foreign policy.

France will take over the EU presidency for the second semester of 2008, starting on 1 July. Sarkozy is expected to announce the Mediterranean Union on July 13 as the key project of his EUpresidency.

Sarkozy originally intended to officially launch the initiative at a summitinvolving just the 10 potential member countries in Paris on 13 July, with the other EU membersnotparticipating until a day later. Following the German-French agreement, all the EU member states will nowbe present at the creation of the new project.

Angela Merkel stated from the beginning that Germany wished to play its part in this project: "The Mediterranean region is a mission for all of us in Europe," she said when addressing the German Bundestag last December, adding that "Europe can only succeed jointly".

Following the German-French agreement, Merkel said that she would recommend that the Slovenian Presidency to initiate thefirst official talks on the subject at the upcoming European Council on 13-14 March.

"You will see that we have found a compromise on this Mediterranean Union, which will not exclude anyone," Sarkozy said at a joint press conference with Merkel.

Francehad already indicated that it wasaware of the irritations in Germany and other member states caused by the wording 'Mediterranean Union', withEU affairs secretary Jean-Pierre Jouyet saying that it would rather be a "Union for the Mediterranean", seeking to assuagefears that it would become a separateentityalongside the EU.

Turkey has also criticized the French plans, viewing the initiative as a means to bury Turkey's EU membership ambitions.

Sarkozyfirst floated the idea of a Mediterranean Union during his election campaign in 2007, suggesting that five North African countries (Morocco, Algeria, Tunisia, Mauritania and Libya) and five EU member states (France, Spain, Italy, Portugal and Malta) should pool together.

According to the French proposal, the Mediterranean Union's focus should be on crime and terrorism, sustainable development, illegal immigration and energy security.

The initiative received backing from Italy, Spain and Greece, but drew heavy criticism from Germany, which iskeen to ensurethat the initiativedoes not compete with the EU or the Euro-Mediterranean Partnership (under the 'Barcelona Process').

The 'Barcelona Process' is broader in scope but has failed so far to fulfill high expectations due to a lack of willingness from the EU's southern neighbours to co-operate withone another.